National Wages Council to reconvene this year amid Covid-19's rising toll on Singapore jobs

[SINGAPORE] The National Wages Council (NWC) will reconvene this year as the Covid-19 pandemic takes a toll on the labour market.

Manpower Minister Josephine Teo announced this in a Facebook post on Monday after a recent meeting with National Trades Union Congress (NTUC) secretary-general Ng Chee Meng and Singapore National Employers Federation (SNEF) president Robert Yap to share information on ground concerns.

"Both the views of workers and employers matter, especially at this critical time... We will remain in close consultation on jobs and the economy," said Mrs Teo.

She said they agreed to reconvene the NWC, which is usually convened once a year. The high-level council - chaired by DBS Bank chairman Peter Seah and comprising representatives from the government, employers and unions - had already been convened earlier than usual this year.

It released its recommendations on March 30, ahead of the usual schedule that sees it making its recommendations in end-May.

About 3,600 employers notified the Ministry of Manpower of cost-cutting measures that had affected workers' salaries since April, protecting some 150,000 jobs that might otherwise have been lost and seen workers displaced, said Mrs Teo.

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Many employers took the cue from the council's recommendations this year to manage excess manpower, such as by implementing a flexible work schedule to time-bank the hours not worked while continuing to pay their workers' salaries in full, or supporting those whose commission or overtime pay were reduced to get a second job to supplement their income, she said.

She noted that the majority of employers have been responsible and fair in implementing cost-saving measures and preventing job losses. In many of the cases where her ministry had to intervene, the employers were prepared to review their initial plans to lighten the burden on employees.

"However, significant economic headwinds and uncertainty remain. Many employers will continue to see weak demand, and face pressure to retrench workers. It is therefore timely for NWC to update the tripartite position on wages and other issues of concern to workers and employers," she said.

The minister's comments come after preliminary labour market data for the second quarter of the year, released on July 29, showed that unemployment and retrenchments have risen from the first quarter.

"It is quite likely that the spike would have been sharper if not for employers and unions working hand in hand to save jobs through other cost-saving measures," she said.

The overall unemployment rate rose to 2.9 per cent in June after taking into account seasonal variations - the highest in just over a decade, and up from 2.4 per cent in March. But it was still below the previous peaks during the global financial crisis and the severe acute respiratory syndrome, or Sars, outbreak.

Retrenchments more than doubled in the second quarter, with 6,700 workers laid off, up from 3,220 in the first quarter. This was higher than the peak of 5,510 during the 2003 Sars outbreak, but below the 2009 global financial crisis high of 12,760.

Mrs Teo also commented on the Fair Retrenchment Framework proposed in July by the NTUC, which includes protecting the Singaporean core of the workforce and retaining foreigners with special or critical skills.

She said the SNEF will consider the framework and discuss a mutually acceptable way forward with NTUC.

In the meantime, the ministry will continue its work on the Fair Consideration Framework, she said, adding that there would be updates soon.

"Tripartite partners are aligned on one thing - the need to support our workers and businesses through the storm brought about by Covid-19. Much work ahead," she said.

THE STRAITS TIMES